Pitcairn Co. Reduces Dell Technologies Stake by 52% in Q3

Pitcairn Co. has significantly reduced its stake in Dell Technologies Inc. (NYSE: DELL) by 52% during the third quarter of 2023, as revealed in its recent 13F filing with the U.S. Securities and Exchange Commission (SEC). The institutional investor now holds 4,130 shares of Dell, having sold 4,467 shares during this period. The value of Pitcairn Co.’s remaining holdings in Dell Technologies stands at approximately $586,000.

The move by Pitcairn Co. reflects a broader trend among institutional investors and hedge funds making adjustments to their positions in Dell Technologies. For instance, Phoenix Financial Ltd. increased its stake by a remarkable 95.3% in the same quarter, bringing its total to 33,792 shares valued at around $4.9 million after acquiring an additional 16,488 shares.

In a striking development, Stonegate Investment Group LLC escalated its holdings by 24,493.8%, now owning 411,946 shares valued at approximately $58.4 million following a purchase of 410,271 shares. Similarly, Commerzbank Aktiengesellschaft FI boosted its stake by 637.3%, now holding 19,333 shares valued at about $2.7 million.

Providence Capital Advisors LLC entered the fray by acquiring a new stake in Dell Technologies worth approximately $7.06 million. Additionally, Allspring Global Investments Holdings LLC increased its position by 4.9%, bringing its total to 273,850 shares valued at around $41 million. Overall, institutional investors and hedge funds currently own 76.37% of Dell’s stock.

Recent Stock Performance and Earnings Report

Dell Technologies shares opened at $146.39 on Friday, reflecting a significant increase in the company’s market performance. The stock has a 50-day simple moving average of $123.12 and a 200-day simple moving average of $132.26. Over the past year, Dell’s stock has fluctuated between a low of $66.25 and a high of $168.08. The company boasts a market capitalization of $97.01 billion and a price-to-earnings ratio of 16.79.

In its latest quarterly earnings report issued on February 26, 2024, Dell Technologies reported an earnings per share (EPS) of $3.89, exceeding analysts’ consensus estimates of $3.53 by $0.36. The company generated revenues of $33.38 billion, surpassing expectations of $31.60 billion. This marks a substantial 39.5% year-over-year increase in revenue, compared to $2.68 EPS in the same quarter last year.

Looking ahead, Dell Technologies has set its guidance for the first quarter of 2027 at $2.90 EPS and for the full fiscal year at $12.90 EPS. Analysts predict that the company will achieve an average EPS of $6.93 for the current fiscal year.

Dividend Announcement and Analyst Ratings

In a positive development for shareholders, Dell Technologies recently announced a quarterly dividend of $0.63, scheduled for payment on May 1, 2024. Shareholders of record on April 21, 2024, will receive this dividend, which represents an annualized rate of $2.52 and a yield of 1.7%. This dividend reflects an increase from the previous quarterly payment of $0.53, with a current payout ratio of 24.08%.

Several analysts have provided insights on Dell’s stock performance. JPMorgan Chase & Co. adjusted its price target from $170.00 to $155.00, maintaining an “overweight” rating. Wall Street Zen upgraded Dell Technologies from a “hold” rating to a “buy” rating. The Goldman Sachs Group initiated coverage with a “buy” rating and a target price of $165.00. Furthermore, Evercore reiterated an “outperform” rating with a price target of $160.00, while Barclays raised its target from $148.00 to $168.00.

Currently, sixteen equity research analysts have rated Dell Technologies with a “buy” rating, six with a “hold” rating, and one with a “sell” rating. According to data from MarketBeat, the stock has a consensus target price of $163.28.

Dell Technologies Inc. is a multinational technology company founded by Michael Dell in 1984. The company has evolved from a direct-to-consumer PC business into a diversified information technology provider. Its offerings include client computing devices, enterprise infrastructure, software, cloud services, and various professional services aimed at facilitating digital transformation.